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Tag: Bitcoin

Former Secret Service Agent Who Stole Bitcoins During Probe Sentenced to 6 Years in Prison

bitcoin_bigBy Steve Neavling
ticklethewire.com

A former Secret Service agent who illegally accessed the now-defunct Silk Road website and stealing bitcoin was sentenced Monday to nearly six years in prison and ordered to pay $1 million for the siphoned currency, the Wall Street Journal reports. 

Shaun Bridges, 33, pleaded guilty to felony charges of money laundering and obstruction of justice.

Officials pegged the value of the bitcoin at $350,000 when the currency was stolen.

Bridges sold the currency for $820,000.

Bridges’ attorneys urged the judge to sentence him to three years in prison.

Former Secret Service Agent Pleads Guilty to Stealing $820K Worth of Bitcoin During Silk Road Probe

bitcoin_bigBy Steve Neavling
ticklethewire.com

A former Secret Service agent accused of pocketing $820,000 worth of Bitcoin money while investigating the Silk Road online drug marketplace has pleaded guilty to money laundering and obstruction of justice.

Tech Times reports that then-Secret Service Agent Shaun Bridges admitted Monday to stealing the Bitcoin money and placing it in a personal account.

Bridges said he stole about 20,000 Bitcoin in 2013.

Another federal agent, Carl Force, also admitted to stealing the digital currency several month ago.

“This case shows we will act quickly to hold wrongdoers accountable, no matter who they are,” Assistant Attorney General Leslie R. Caldwell said.

Ex-Secret Service Agent Pleads Guilty to Stealing 820K from Silk Road Seizure

By Steve Neavling
ticklethewire.com

A former Secret Service agent has pleaded guilty to stealing hundreds of thousands of dollars worth of bitcoin during an investigation of Silk Road, the Examiner.com reports. 

The former agent, Shaun W. Bridges, was accused of skimming $820,000 from the Silk Road seizure and was charged.

The computer crime expert was sentenced to life in prison after being convicted of narcotics trafficking, computer hacking, running a criminal enterprise and money laundering.

Authorities said Bridges transferred about 20,000 bitcoin from the Silk Road accounts.

DEA Agent Carl Force also is accused of stealing thousands of bitcoins during the road.

Other Stories of Interest

 

Federal Agents Charged with Stealing Bitcoins While Investigating Website

By Steve Neavling
ticklethewire.com

Two former federal agents are accused of stealing bitcoins while investigating the online drug marketplace Silk Road.

The Huffington Post reports that Carl Force, 46, a former DEA special agent, and Shaun Bridges, 32, an ex-special agent with the Secret Service, were arrested and charged, the Justice Department announced Monday.

Force has been charged with wire fraud, money laundering, conflict of interest and theft of government money. Bridges faces charges of wire fraud and money laundering.

Force, whose salary was roughly $15,000 a year, is accused of putting bitcoings into his personal account to pay off “mortgage, a government thrift savings plan loan, and wrote several very large checks for tens of thousands of dollars,” the affidavitt reads.

Bridges and Force worked on the plan together, authorities said.

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U.S. Plans to Auction Off Nearly 30,000 Bitcoins Seized in Crackdown on Online Marketplace for Illicit Drugs

Steve Neavling
ticklethewire.com

The U.S. government plans to unload nearly 30,000 bitcoins – valued at $17.3 million – during an auction later this month after seizing the currency as part of an FBI crackdown last year on an illicit online marketplace for drugs, the Wall Street Journal reports.

Some of the bitcoins seized from Silk Road  will be auctioned off over a 12-hour period on June 27. Bids can be placed on the U.S. Marshals website.

The Journal reports that the sale of so many bit coins could devalue the digital currency.

The value of bitcoins have fluctuated wildly after reaching an all-time high of $1,166 in December. The value hit a low of $344.24 on April 11 and has bounced back to $583, the Journal wrote.

Ross Ulbricht, the alleged administrator of Silk Road, was arrested in October by the FBI. He faces trial on Nov. 2.

How Authorities Tracked Down Alleged ‘Silk Road’ Founder

Steve Neavling
ticklethewire.com

Authorities knew him as the “Dread Pirate Roberts” and the founder of the largest online marketplace for illegal drugs.

His sophisticated site, called Silk Road, made it nearly impossible for authorities to trace him or the users because of an encryption network and digital currency called “bitcoin.”

But FBI agents finally tracked down the alleged founder, 29-year-old Ross William Ulbricht, after he posted his Gmail address online, CNN reports.

Experts were able to track him down at a San Francisco library.

The site allegedly sold drugs, fake IDs, guns and even hitmen.

FBI Busts Alleged Mastermind Behind Underground Marketplace for Drugs Online

Steve Neavling
ticklethewire.com 

Investigators have struggled for two years to stop an online, underground marketplace from selling more than $1 billion in cocaine, heroin, ecstasy and other illicit drugs in exchange for a virtual currency called Bitcoin, The Verge reports.

But now it appears the FBI has snagged the mastermind, Ross Ulbricht, who is being charged with narcotics trafficking, money laundering and computer hacking.

The site, called Silk Road, was only accessible through a special network.

According to The Verge, law enforcement bought more than 100 packages of drugs and had them sampled.

“Samples of these purchases have been laboratory-tested, and have typically shown high purity levels of the drug the item was advertised to be on Silk Road, FBI Agent Christopher Tarbell told The Verge.

Bitcoin Bumble: Leaked FBI Doc Could Help Hackers Protect Their Virtual Loot

Shoshanna Utchenik
ticklethewire.com

An internal FBI report that was leaked and made its way onto the Internet this week may unfortunately help some folks with illegal activity.

The website WIRED reports that that an FBI report called “Bitcoin Virtual Currency: Unique Features Present Distinct Challenges for Deterring Illicit Activity,” raises concerns about the anonymous Bitcoin payment network as an alarming haven for money laundering and other criminal activity — including as a tool for hackers to rip off fellow Bitcoin users.

The leaked report unfortunately provides advice for Bitcoin users looking to further protect anonymity. Oops.

That advice: let the FBI help you out:

  • Create and use a new Bitcoin address for each incoming payment.
  • Route all Bitcoin traffic through an anonymizer.
  • Combine the balance of old Bitcoin addresses into a new address to make new payments.
  • Use a specialized money-laundering service.
  • Use a third-party eWallet service to consolidate addresses. Some third-party services offer the option of creating an eWallet that allows users to consolidate many bitcoin address and store and easily access their bitcoins from any device.
  • Individuals can create Bitcoin clients to seamlessly increase anonymity (such as allowing users to choose which Bitcoin addresses to make payments from), making it easier for non-technically savvy users to anonymize their Bitcoin transactions.

To read more click here.

OTHER STORIES OF INTEREST